The buyer chooses the contractor and the lender vets the contractor: looks for the above stated information and also looks into whether there has been complaints against the lender.I was also told that a 3rd party vendor inspects the property and inspects the work to make certain the work is done properly before monies are distributed for the work completed.

Hi @William InfantesI have done them for 30 years, and with proper structuring, and payment on time, I have yet to have a loan called due.See http://www.biggerpockets.com/search?

Lack of proper maintenance2.

I personally would steer clear of Detroit proper but any outlying areas are going to cost you more than $25,000.

If I understand the quantification properly - we're looking at maybe a D+ property in a C neighborhood:The building is from 1925, The roof is leaking in spots, but by no means is it falling down. 

Remember - the rent has to cover EVERYTHING: PITI and management plus your profit after you establish a cash reserve.This sounds to me like a case of what can happen when folks go out and try to do something BEFORE they learn how to do it.I'd look elsewhere unless you're willing to put forth the effort (and likely some "investment") to learn how to do short sales properly.

In the latter (West Van), I'd say you have nothing to worry about walking neighborhoods alone; in the former (that part of East Van), I'd suggest anyone (especially new to the area) would want a second pair of eyes to "watch their back".Same likely applies to lots of different areas of "Detroit"; some are bound to be great/safe/beautiful whilst others will be more "war zone" style - can't lump it all in to the same bucket :)As far as the airport itself though, can't imagine why it'd be a problem (I can't imagine any major US airport being a problem given how much law enforcement presence there is at all of them) - having flown there myself, it's plenty safe and fine with just the usual airport stuff to watch out for (folks who aren't authorized to provide taxi services trying to solicit in terminal for example or what not else).

Hard Money may not likely be a proper avenue for my situation.  

You could reverse the cap rate to find the a proper price.

The AC guy and the tenant feel bad about this situation but I always try to put myself in their shoes and I wouldn't be happy with AC that doesn't work properly.